Many labor intensive factory always facing troubles on how to maintain, control or boost workers’ productivity through labor laws, especially on hand-made products like garments and shoes.
We all knows that China Labor Laws only protects their locals instead factory, don’t forget China is a communist country! If you are labor intensive factory don’t be naive to use hourly rate on your workers because the locals are very smart to delay their work to earn more overtime allowance. Hence piece rate is more preferable to use to maintain, control or boost workers’ productivity. There are 2 types of piece rate which are daily and monthly average piece rate. If you choose daily piece rate only good for part-time workers because you can monitor their productivity daily and decide to choose between fast workers and slow workers to overtime if is necessary. But daily piece rate if is not computerised calculation would be very tedious on heavy load and high chances on human error or conspiracy in corruption! Hence monthly average piece rate could minimise human error and maintain workers on their productivity, because all piece units are total up monthly using average piece units multiply on their working hours. Remember to deal with the locals the more details in your payroll calculation the more complains and attacks on gray areas from the locals. When workers are unaware on their daily productivity mentally they will maintain their capacity. In addiction you must also reward some incentives like free meal and free accommodation as a package when workers’ reach your factory target, this could boost and maintain productivity but depends on your attractiveness, I would say workers prefer cash rewards than anything else.
Beside rewards your factory you could also penalise workers on piece rate under minimum pay restrictions. If workers couldn’t achieve company target you have the rights to calculate their payroll on exact piece units on workers’ production without supplement the basic salary. Example worker must achieve 21.75 working days to entitle local basic salary RMB920 but if his piece rate regardless on daily or monthly average calculation total couldn’t meet company target on proven records whereby other workers could achieve it. This slow worker company has the rights not to supplement the basic salary and no overtime pay calculation under 150% on normal working days, 200% on weekends and 300% on public holidays under China Labor Laws. Remember you must prove to local authority that the worker couldn’t meet your target on purpose earning basic salary so that you could be protected against workers’ attacks on lawsuits!
As I said before on my article on “China-connection-and-relationship“, if you could develop close relationship with the local authority there are plenty of ways to tackle on gray areas and most important use connection to protect your factory against your workers, let the locals deal with the locals!
Copyright protected by Digiprove © 2010 Cyrus Chang
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Hey mate, thanks for writing but this page doesn’t format correctly in Chrome it is doubled up.
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